Network Formation and Co-ordination Games [chapter]

Siegfried K. Berninghaus, Bodo Vogt
2004 Advances in Understanding Strategic Behaviour  
A population of players is considered in which each player may select his neighbors in order to play a 2 × 2 coordination game with each of them. We analyze how the payoffs in the underlying coordination game effect the resulting equilibrium neighborhood resp. network structure. Depending on the size of the communication costs the resulting equilibrium networks may be characterized by bipartite graphs if the coordination game is of the Hawk/Dove type while networks show a tendency to build
more » ... ete or disconnected graphs if neighbors play a pure coordination game. JEL classification: C72, C92
doi:10.1057/9780230523371_4 fatcat:nk5zzi2r4nhpbeokwcq6qsvamq